Jacinda Adrern seems set to make yet another thing “Not Her Responsibility” so she can blame someone else when it turns pear shaped.
New Zealand Government Forces Central Bank to Include Housing In Rate Setting
The Reserve Bank’s remit will be amended so that the bank considers “the impact on housing when making monetary and financial policy decisions,” Finance Minister Grant Robertson said in a statement Thursday
Governor Adrian Orr pushed back against Robertson’s proposal when it was first made last year, saying that forcing the bank to consider house prices when setting rates could lead to below-target employment and inflation.https://www.bloomberg.com/news/articles/2021-02-24/n-z-government-forces-rbnz-to-include-housing-in-rate-setting
Given the contradictory requirements and the vague at best wording of “impact on housing” which I presume is already considered by all central banks given it’s feed into inflation and employment via construction and price inflation, one can only assume business as usual to continue with the added smokescreen of the government being able to point at the reserve bank when questioned why the affordable housing they promised continues to fail to appear.